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Microsoft and PayPal have announced a strategic partnership to integrate PayPal’s payment solutions into Microsoft’s AI assistant, Copilot, aiming to provide a seamless digital shopping experience that takes users from product discovery to checkout without leaving the platform.

The Copilot Checkout service will initially launch on Copilot.com in the United States, with plans to expand to other channels and platforms supporting Copilot. PayPal will display merchants’ inventory, provide a branded checkout interface, and support guest payments as well as card-based transactions.

The partnership leverages Microsoft’s AI-driven product discovery capabilities alongside PayPal’s advanced payment and commerce infrastructure, enabling users to search, compare, and purchase products within a single, streamlined environment.

Merchants will be able to showcase their product catalogs for direct purchase via Copilot through PayPal’s recently launched “Commerce Sync” feature, part of its push to support AI-powered commerce models.

The companies anticipate that the new service will reduce friction in the buying process, boost conversion rates, and allow merchants to engage consumers at the moment of purchase, enhancing sales opportunities and expanding customer reach.